Madison Street Capital’s CEO Thinks Americans Are Living Longer But Their Money May Not Survive With Them

By 2050, there will be more than a million people over the age of 100 in the United States. And there will hundreds of thousands more who have a good chance of living well into their 90s. That sounds like what everyone has been wishing for over the last few centuries, but with longevity comes an assortment of challenges. Financial experts are faced with planning an investment strategy that keeps the money flowing not just until their clients reach their 70s and 80s, but the money has to be around when they turn 100 or more as well, according to financial expert and the Chief Executive Officer of Chicago-based Madison Street Capital.

Madison Street Capital has a team of financial advisors that plan for the financial security of their clients. Madison Street Capital also specializes in Merger and Acquisitions and hedge fund investments. CEO Charles Botchway is aware that people are living longer, and they are staying healthy longer. But Botchway thinks the industry is not dealing with the aging issue in a comprehensive and methodically way. Financial advisors must take longevity into account by examining health records and family history. Botchway thinks many baby boomers are going to be faced with a dramatic change in lifestyle because their money isn’t going to be around as long as they are.

Botchway said the industry is changing, but it’s not changing fast enough. For example, Botchway claims that when some advisors layout retirement plans, they use the average lifespan of 94 for women and 91 for men. Those ages are in sync with life insurance tables. The average life expectancy for someone that reaches 65 is 84 for men and 87 for women. If a man reaches the age of 75 he can expect to live until he is 86, and a woman will live until she is 88. But those ages have been the norm for years, and Botchway believes those ages don’t reflect what is happening when men and women reach their late 70s. One reason that the ages should be adjusted and financial advisors should change their investment strategies is the advancements that have been made in medical technology.

Madison Street Capital advisors are taking those advancements into account when they put a portfolio together for clients. There are so many factors that are contributing to a longer lifespan, and all of those factors must be taken into account in order to protect people as they age. More people will need more money just to maintain the lifestyle they are comfortable with. But many baby boomers are going to run out of money, and it’s not going to easy for them to make that adjustment, according to Botchway. But Botchway is making sure that doesn’t happen to his clients.